IGIDR Working Paper: How is financial regulation different for micro-finance?  

 

No:WP-2012-005

Author:M. Sahoo, Renuka Sane, Susan Thomas

Title:How is financial regulation different for micro-finance?

Abstract:

What is the role of financial regulation in the field of micro-finance? This paper identifies two features of micro-finance which call for unique treatment in policy considerations as compared to policy thinking in the mainstream body of financial law. These features are credit recovery and the credit risk of the MFI, when credit access is enabled through the structure of the joint liability group. The paper goes on to offer draft law which embeds a regulatory treatment of micro-finance that flows from this analysis.


Key words:micro-finance, micro-credit, joint-liability-groups, india, consumer protection, regulation


JEL Code(s):G20, G21, G28


Weblink: http://www.igidr.ac.in/pdf/publication/WP-2012-005.pdf